CURRENCY INFLATION MCQS SET 31

CURRENCY INFLATION MCQS SET 31

301) Amongst the currency quotes USD/JPY, USD/ Euro and USD/CAD, which one of the following is referred as the base currency for quotes?
A) US $
B) JPY
C) Euro
D) CAD
Correct Answer: US $
   
302) Which of the following is/are treated as artificial currency?
A) ADR
B) GDR
C) SDR
D) Both ADR and SDR
Correct Answer: SDR
   
303) Which of the following measures should be taken when an economy is going through inflationary pressures?
1. The direct taxes should be increased.
2. The interest rate should be reduced.
3. The public spending should be increased
Select the correct answer using the code given below:
Code:
A) 1 only
B) 2 only
C) 2 and 3
D) 1 and 2
Correct Answer: 2 only
   
304) The terms of economics, the recession occurring two times with a small gap in between is known as
A) Double Deflation
B) Deflation
C) Deep Recession
D) Double Dip Recession
Correct Answer: Deep Recession
   
305) Immediately prior to change in the measure of Food Inflation, which of the following indexes was being used for measuring it?
A) Wholesale Price Index
B) Consumer Price Index
C) Interest Rates offered by banks on deposits
D) Sensex and Nifty
Correct Answer: Wholesale Price Index

306) Cheap Money means
A) Low Rate of Interest
B) Low level of Savings
C) Low level Income
D) Excess of Black Money
Correct Answer: Low Rate of Interest
   
307) India has experienced persistent and high food inflation in the recent past. What could be the reasons?
1. Due to a gradual switch over to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2 and 3
Correct Answer: 2 and 3 only